New Rent vs Buy Calculator for Consumers

This shift in the buy-and-sell
pattern has opened up possibilities of ownership for people of all
credit levels. Our goal at Cars On Terms is essentially to let
customers rent to own a car. What it comes
down to at the end of the day is making a smart and informed
decision.

Is Renting or Buying Right
for You?

Between the cost and the long-term
commitment, purchasing a vehicle can be a daunting move. However,
the option to rent to own a car is becoming more widespread in
Australia.

Making monthly payments on a car
follows the same pattern as paying rent. Many times for the
consumer, renting feels like a cheaper option than buying,
especially when a purchases requires a large sum of money upfront.
Making a significant purchase these days, though, resembles paying
rent due to all of the financing options.

A tool invented by Australian
Securities & Investments Commission (ASIC) to aid consumers in
making an informed decision about this is the Rent vs Buy
calculator. We want to explore the functions of this tool and the
power it actually has to help you make the right decision.

Calculating Made
Easy

Comparing prices at the grocery
store is simple. You hold the two different jars of vegemite next
to each other and decide how much money you want to spend.
Comparing the price of "renting" and "buying" is more complicated.
It is an important equation to consider, especially if you are
looking to rent to own a car.

The Rent vs Buy calculator on ASIC's MoneySmart
website was developed to help consumers
who are debating between renting and buying to make an informed
decision. Despite that fact that making multiple lower payments
initially feels like the more affordable option, you can end up
paying up to four times more than the purchase price after all the
lease payments have been made.

The calculator calculates the
difference between the purchase price and total lease payment of an
item. First, you enter the item you wish to buy, such as a car.
Next, you enter the rental payment and specify if the charge is
daily, monthly, or weekly. Under "rent details," you enter the
period of time you will be renting said item. Underneath "buy
details," you enter the actual purchase cost of said item.

Once you enter all of your
information, the calculator provides an estimate of the two costs
side by side. The end goal of this tool is to help you decide if it
is worth it to rent to own a car.

From the Renter to the Owner

Here at Cars on Terms, we offer a better plan that allows
making payments according to your own terms. We understand that
each and every consumer has their own lives and economic
situations, and we are simply here to make things work out of what
is available. The ultimate goal is for you to own a vehicle. We can
help you achieve that goal by selecting an appropriate financing
loan plan, which suits your needs.

While other companies offer other types of options, such as
rent to own, what we offer is a loan program, which will allow you
to make payments within your means, and depending on your
situation. We take each customer uniquely, addressing the situation
on a case-by-case basis.

While renting to own is a viable option, it actually ends up
more expensive than the plan that we can offer you. You only end up
making higher repayments instead of saving money. Once you start
writing down all the costs involved, why not consider owning
something through a loan right on rather than going through the
loan route, which is more complicated, anyway? With Cars at Terms,
making such higher repayments will allow you to save
money.

Once you sign up with us, we will assign you with a case
manager who will then personally assist you in going through the
application, making sure that we take into consideration your
unique situation, and offer you what we can in order to help you
get approved.

As a member of the National Credit Providers Associations,
the Credit Investments Ombudsman Service, and serves as a holder of
an Australian Credit Licence and Motor Dealers Licence, you can
have the assurance that we have the necessary qualifications to
provide assistance, not just in applying and having your car loan
approved, but also to assist you in improving your future finance
chances. We believe that you will be able to find a useful and
satisfactory plan with us here at Cars on Terms.